Insurance claims often relate to damage to vehicles. By way of example, a vehicle of an insured may be damaged in a collision or by vandalism, falling objects, or other causes. The damaged vehicle is usually taken to a repair facility, such as an automobile body shop. The automobile body shop inspects the vehicle, determines the parts and labor time necessary for the repairs, obtains part prices, uses applicable labor rates, and prepares an estimate for the repairs.
Insurers typically do not typically accept the body shop's estimate. The body shop's estimate may differ from an insurer's assessment of the cost of repairs for a variety of reasons. These reasons may include an insurer's assessment of the labor time involved in the repairs being lower than that in the body shop's estimate, the insurer's assessment of the prevailing labor rate being lower, and the insurer's assessment that certain parts are available at lower expense, by way of example. There is also a risk that the body shop's estimate includes one or more errors, such as replacement of a part which is not damaged, as well the possibility of fraud in the preparation of the estimate.
In order to assess the body shop's estimates, an insurer will typically assign an insurance adjuster to inspect, personally and on-site, the damaged vehicle. The adjuster will then prepare a report which can be used to generate the insurer's own cost estimate for the repairs. The insurer's cost estimate is then presented to the body shop. If the body shop disagrees with the insurer's cost estimate, the body shop and a representative of the insurer will then negotiate to attempt to reach agreement. Only once agreement is reached will repairs on the vehicle commence.
The insurer's costs associated with vehicle repairs thus include the time and expenses associated with a personal inspection by an adjuster of the damaged vehicle, as well the preparation of an estimate by the adjuster. If the body shop does not accept the insurer's cost estimate, the insurer's costs further include costs associated with the time of insurer representatives in negotiations with the body shop.
Systems and methods for verification of vehicle repair cost estimates submitted by repair facilities, while limiting the need for personal inspection by an insurance company adjuster of a damaged vehicle, would be desirable.